RM20bil projects in Penang S-W district

New city: An artist’s impression of the PICC project by Hunza Properties.

Hunza and Ideal to come up with RM13bil schemes

THE south-west district of Penang island will attract RM20bil worth of new residential and commercial projects over the next five to 10 years.

About RM13bil worth of projects are new ones planned by Hunza Properties Bhd and Ideal Property Sdn Bhd, which are large-scale schemes expected to generate thousands of fresh job opportunities.

From Ideal Property, the projects are a RM2.4bil mixed development project on Pulau Jerejak, the RM520mil Imperial Grande in Bayan Lepas, a RM300mil condominium development known as The Rain in Sungai Ara, the RM486mil Queens Residence 2 at Persiaran Bayan Bay Indah, and a RM1.4bil landed property scheme in Balik Pulau.

The projects from Ideal Property will be developed over a five-year period till 2022.

Hunza Properties plans to develop the RM8bil Penang International Commercial City (PICC), a mixed development project comprising condominiums and serviced apartments, a shopping mall, retail outlets, hotels, a business process outsourcing (BPO) tower and a medical centre.

The PICC project will be developed over a 10-year period on a 43.35 acres in Bayan Baru.

It is not surprising that the location continues to draw interest from developers for large-scale projects amid uncertain times.

“The lower pricing of vacant land in the south-west district compared to other parts of the island is a key attraction.

“Development land in the prime location of the district is priced at RM250-RM450 per sq ft (psf), compared to RM800-RM1,200 psf in the prime location of the north-east district,” says Raine & Horne senior partner Michael Geh.

The stability of housing prices in the south-west district provides a compelling reason for house buyers to invest in the area.

“When an investor looks for a property to buy, a top consideration is always in the stability and the potential of property prices to appreciate in an area.

“High-rise residential properties with a built-up area of 1,000 sq ft and above are priced from RM450 psf to over RM600 psf, which is more or less the same as in 2013.

“Similarly landed residential properties with a land area of about 1,400 sq ft are priced from RM1.2mil to RM1.4mil and above.

“The interest to launch on the island will ensure that there will be sufficient supply to hold property prices from spiralling upwards,” Geh adds.

Ideal Property executive chairman Datuk Alex Ooi says the Pulau Jerejak mixed development project and Queens Waterfront development at Queensbay are the biggest projects the group plans to launch in 2017.

The Pulau Jerejak mixed development scheme is on 75 acres, while Queens Waterfront sits on 26 acres reclaimed land.

“Local buyers are looking for sizeable residential units within a strategically located well-planned scheme.

“From our feedback, high-rise residential units should have a built-up area of over 1,000 sq ft and a price tag of over RM850 psf.

“The masterplan of our new projects is based on the need to have easy access to amenities, sizeable living space and competitive pricing.

“As landed properties are scarce on the island, we plan to launch single-storey terraces on 100 acres with competitive pricing in Balik Pulau over a five-year period,” Ooi says.

Ideal Property plans to inject some of its affordable and medium range properties which will be launched next year into Ideal United Bintang Bhd (IUBB), subject to approval from relevant authorities.

IUBB, which is part of Ideal Property Group, is involved in developing medium-range properties.

Hunza Properties managing director Datuk Khor Siang Gin says the PICC masterplan caters to the population growth of the southern part of the island, which is expected to experience 60% growth by 2020, according to the Penang Institute.

“The masterplan incorporates thousands of residential units within a commercial development to be developed in three phases, incorporating businesses that complement the needs of various individuals within the area.